The Ministry of Electricity decided to cancel the contract with an international company to assist the Egyptian Electricity Holding Company (EEHC) in technical evaluation and management of Siemens power plants.
Sources at the EEHC said that three companies submitted technical and financial offers. EDF offered €8m, Parsons offered €5m, and RWE offered about EGP 16m.
EEHC officials met with representatives of EDF Energy after it offered the lowest price. The EEHC asked EDF Energy to do additional work regarding the technical evaluation and plants management at the same price they offered, which made the representatives of EDF Energy increase the financial offer. EEHC officials will study the new offer and submit a reply in three weeks.
The sources explained that the views were split between supporters of the idea of contracting with an international company to manage Siemens plants, and between those that are against the idea because of the high offers put forward by international companies.
According to sources, the EEHC preferred assigning the technical evaluation and management to experts and leaders of the Ministry of Electricity to rationalise expenditure in light of the lack of financial liquidity, especially since the company will receive 12 production units by the end of this month to start commercial operation and to inaugurate the first phase of the project in March.
According to the agreement of the Ministry of Electricity and Siemens, commercial operation capacities will reach up to 4,800 MW through Beni Suef, Borollos, and the New Administrative Capital power plants during March.
Sources explained that the Ministry of Electricity would only use the capacity of Siemens projects in Beni Suef, Borollos and New Administrative Capital until 2018, and will focus in the coming period on the development and expansion of the national electricity grid to accommodate future capacity.
The total capacity of the power plants production implemented by Siemens for the benefit of the EEHC reached 14,400 MW.